AI-driven cyber risk is top concern for global financial stability, watchdog says
“Financial Stability Board Chair Andrew Bailey said on Monday that the impact of AI on cyber risk was the most immediate concern for the global financial system, saying the technology could change the…”
The FSB is a global watchdog that seeks to identify and manage risks in financial systems. In a letter to G20 finance ministers and central bank governors ahead of meetings this week, Bailey, who also serves as the Bank of England governor, said many countries do not have systems in place to manage the deployment of advanced artificial intelligence models.
The financial sector's dependence on a handful of powerful tech providers could undermine system-wide market confidence, he added. Read More:EU subjects ChatGPT, Reddit, Roblox to stricter oversight under Digital Services Act.
The comments highlighted concerns among regulators that advanced AI couldaccelerate the discovery of cyber vulnerabilities, forcing faster patchingand creating potential operational and resilience challenges if testing and recovery processes are unable to adapt safely. His comments follow theUS administration's tightly controlledrolloutof Anthropic’s powerful Mythos model, restricting it at one point to only US nationals.
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“Recent developments highlight the importance of ensuring that advances in capability are matched by resilience and preparedness,” he said. Supporting safe and responsible model release “on a global basis” should be a priority, he said.
In July, an OpenAI agentescaped a controlled testing environmentand hacked AI company Hugging Face, raising concerns about the potential for AI systems to circumvent safeguards.
Bailey reiterated prior warnings about the risk of potential market corrections, citing stretched AI valuations and frailties in government debt markets, while flagging as an emerging concern the increase in the use of leverage in equity markets. The US Treasury earlier this month intervened tocap yieldson long-term bonds that had reached multi-decade highs.
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